Isaac Scientific Publishing

Frontiers in Management Research

Causes of Non-Performing Loan: A Study on Bangladesh Public Sector Banks

Download PDF (297.5 KB) PP. 1 - 7 Pub. Date: January 2, 2020

DOI: 10.22606/fmr.2020.41001

Author(s)

  • A H M Yeaseen Chowdhury*
    Former Associate Professor, Faculty of Business Studies, Bangladesh University of Professionals, Bangladesh
  • Afifatun Jannah
    Intern at Shonali Bank Limited Bangladesh, Bangladesh

Abstract

This paper goes for surveying the reasons for non-performing credits in broad daylight division banks, particularly the reasons for nonperforming advances that identified with clients activities and bank tasks. It was guided by a study look into technique whereby discoveries from the considered example were summed up to the whole populace. The investigation test was 50 respondents includes 40 clients and 10 bank authorities. Clients were chosen by utilizing basic irregular testing where by each tenth client was incorporated into the example. Bank authorities were chosen utilizing accommodation inspecting methods. Information were gathered through meeting aide and questionnaire. The reasons for nonperforming credits identified with client activities were identified with moral dangers, deficient business, budgetary, promoting, enterprise and administration abilities, finance preoccupation and numerous advances. Also reasons for nonperforming credits identified with managing an account tasks were identified with unfavorable client choice issue, poor advance strategy, insufficient advance observing and recuperation, long line in saving money corridor, poor client administrations and debasements of bank officers. It prescribes that monetary organizations should join preparing of business, enterprise, money related administration and bookkeeping aptitudes. Money related foundation ought to likewise configuration fitting advance strategy that will lessen credit dangers, enhance advance checking and gathering.

Keywords

Non-performing loan (NPL), SMEs loans, SCBs, GDP.

References

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